Cable Operators (“Operators”) that provide communication and media services and products to Subscribers using a subscription payment model generally enter into contracts with Subscribers in which the Subscribers agree to pay for the services in arrears every month. This subscription payment model requires the Operators to maintain a significant billing system infrastructure to handle Subscriber billing and accounting.
Potential revenue may be lost by Cable Operators due to shortcomings of the typical subscription payment arrangement. For example, many potential new Subscribers do not pass the Operator's credit checking process so the Operator may lose any potential revenue from these Subscribers. Additional revenue is lost when established Subscribers default on their payments for the service already provided. Operators also lose potential revenue when they are unable to make service agreements with potential Subscribers who are not permanent residents at a location, such as hotel rooms or vacation rental properties.